Creating 1099-NEC for expense with incorporated contractor

leosun1987 · ‎January 13, 2021

Hi,

I am a landlord who owns a rental property. I need to create 1099-NEC for contractors I hired. One of the contractors I hired is a C-corporation and the expense is above $600. I thought filing 1099-NEC to a corporation is exempted (it was a tree removal work) based on https://www.irs.gov/instructions/i1099msc. But a tax professional told me as an unincorporated individual I need to file 1099-NEC no matter the other party is an individual or a corporation for an amount $600 or over. So I got confused now. I guess even though it is not required, I can file a 1099-NEC anyway.

tagteam · ‎January 13, 2021

@leosun1987 wrote:

.....I guess even though it is not required, I can file a 1099-NEC anyway.

You can file the form, but it is not required in this instance.

See https://www.irs.gov/instructions/i1099msc#idm140364727413952

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leosun1987 · ‎January 13, 2021

That is what I thought. Are there any filing requirements on the payer instead of the receiver?

tagteam · ‎January 14, 2021

The payer has the filing requirement (if the threshold is met) with respect to the tax reporting statement (e.g., Form 1099-NEC).

The recipient is required to report the figure(s) on the statement on an income tax return if the filing threshold is met.

Creating 1099-NEC for expense with incorporated contractor

Investors & landlords

Investors & landlords

Investors & landlords